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Cowen and Company boosts its price target on Outperform-rated Orbotech (Nasdaq: ORBK) from $32 to $35 following Q3 results released this morning.

With tech inflections driving top line and margin growth across the product line, the company guided to record revenue and GM which we believe can be sustainable at this ~47% level. Strong $100M FPD booking set up the company nicely for 2017. Additionally its OLED and SD position set it up nicely as a takeout candidate (perhaps for AMAT or KLAC?)

While PCB revs were down off a difficult compare, margins are solid on a mix to flexible PCB tools and the Precise repair tool. Flexible OLED is turning out to be an additional opportunity for flexible PCB and ORBK is getting flex PCB attachment to flexible OLED's produced by Samsung which we think are likely destined for the next generation iPhone. Overall the lookout looks bright indeed.

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